The Hillsborough County Commission on Wednesday approved a non-binding memorandum of understanding to invest nearly $1 billion in public money for the construction of a stadium for the Tampa Bay Rays.
The vote was 5-2, with Donna Cameron Cepeda and Joshua Wostal, an outspoken critic of the agreement, voting no.
"A monumental betrayal to the taxpayers of Hillsborough County," Wostal said.
The Tampa City Council will take up the tentative agreement on Thursday morning.
Approval by both boards authorizes the city, county and Rays to resume negotiations on unresolved specifics not in the MOU, which was finalized last week after months of negotiations.
County officials say the memorandum will serve as a template for those talks.
Commission Chair Ken Hagan has been the board's point person on dealing with the team. He said there was no reason to vote no.
"Let's not lose track that this is a work in progress," he said. "At the end of the day, regardless of where you stand on the issue, today's vote is on a non-bonding MOU. There's zero downside to letting (County Administrator Bonnie Wise) and staff continue to negotiate in order to reach the best possible deal for the county and the taxpayers."
The tentative agreement, finalized last week by the team, county and city, details financing for the $2.3 billion indoor stadium, which would be the anchor of a multiuse district on land now used by Hillsborough College’s Dale Mabry campus. The Rays have said they plan to invest at least $8 billion in the surrounding development.
“The bottom line is that to not move the process forward, to simply put the brakes on it at this moment, in my view, would be highly irresponsible,” said Commissioner Harry Cohen, who voted yes.
“You do have to have some faith in our community in order to make a step forward on a vote like this. But I believe in this community. I believe in Tampa, I believe in Hillsborough County, and I believe in the region. I believe that the region will support this team if it's in the right place, in the right circumstances. And that is what this is about getting to."
The MOU caps the public contribution at $976 million. The county’s share is $360 million from the Community Investment Tax, $303 million from tourist taxes and reserves, $30 million from federal disaster recovery funds.
The CIT money would be paid over four years, according to the agreement, with no bonding, which would save on interest and issuance costs.
Public funds would only go to public areas of the ballpark.
The Rays have committed $1.27 billion toward the stadium plus all cost overruns. Their goal is to open the ballpark by March 2029. Their lease at St. Petersburg's Tropicana Field ends at the end of the 2028 season.
Gov. Ron DeSantis has pledged up to $150 million in state money to rebuild the college on the property and for infrastructure. Last week, however, state Sen. Ed Hooper, R-Clearwater, chair of the Senate Budget Committee, said it was unlikely that would happen until local governments agreed on financing for the stadium.
Rays ownership had set a June 1 deadline for all stakeholders to agree on the deal. The Rays have said any delay could jeopardize state funding to rebuild the college, and missing the 2029 construction timeline would "materially increase costs and invalidate the proposed budget.”
The Hillsborough College Board of Trustees also approved a ground lease Wednesday to allow the Rays use of the Dale Mabry campus. As part of the agreement, the team would lease the 130-acre Drew Park property from the college.
The lease is structured to last 99 years, with options for four additional 10-year extensions. The annual base rent is $10, though the tenant would be responsible for nearly all property-related expenses, including taxes, insurance, utilities and maintenance.
The lease gives the Rays authority to redevelop and control the property, including demolishing and rebuilding structures, subdividing parcels, entering into subleases, creating leasehold condominiums and securing naming rights. The Rays also accept the property “as is” and assumes most liability and insurance obligations connected to the site.
"It is a generational investment into this community," said board member Clay Hollis. "I think this board sees it. I think the rest of the community sees it. It's a chance to really make a generational investment into this community."
Before the county commission's vote, Wostal sternly asked a series of questions of county staff involved in the negotiations. Among them was whether there was any coercion involved in finalizing the MOU to "meet the state Legislature's mandate that the local government's reach an agreement prior to the release of the state's appropriations for this deal."
"Can I say that we were threatened? No, we were not," replied Deputy County Administrator Greg Horwedel.
Wostal closed by calling for the MOU to be placed on the November ballot, "so the taxpayers have an appropriate voice to signify their support."
"This MOU absolutely imposes risk and harm, not only to law enforcement and first responders, but also the general taxpayers, and nobody can suggest otherwise," he said.
The city council has two votes scheduled on the MOU. At a 9 a.m. meeting, councilors will vote on investing $80 million from its portion of the CIT, a half-cent sales tax whose renewal takes effect in December.
If there is passage, councilors will meet again at 11 as the Community Redevelopment Area board to consider using $100 million from the Drew Park CRA, which would cover upfront costs with future property tax growth.
According to the MOU, unresolved contractual issues to negotiate include:
- Funding backstop & surety for a portion of CIT funding source.
- Source of funding for CapEx (maintenance) expenses.
- Future development mix, ownership of non-ballpark land underlying private development and impact on property taxes.
- Rays’ commitment to minimum valuation for private development (excluding ballpark, college facilities and other tax-exempt uses).
- Recourse for county, city and CRA if all proposed private development does not materialize.
- Ballpark cost estimates, scope of value engineering and local government input on design/construction of public use areas.
- Revenue sharing for parking and certain other revenues.
- A Community Benefits Agreement.
"Today’s affirmative vote is excellent news for our community, but it is only the first of several crucial steps this week to keep the project on track and ultimately make it all come to life," Rays CEO Ken Babby said in a statement following the commission vote. "We look forward to continued negotiations in our mutual goal to deliver an agreement that is fair and beneficial to all.”
